HOUSTON – (Realty News Report) – The 801 Travis building in downtown Houston has seen a recent surge of leasing activity as the central business district gradually recovers from the economic shocks of the COVID-19 pandemic.
The 21-story 801 Travis tower has recorded 32,358 square feet of leasing activity in recent months, according to Lincoln Property Company, which manages leasing at the property.
Many of the newly signed tenants are small energy firms and professional-service providers that favor established, well-located office space but are not seeking rapid expansion or paying the premium rents that come with newly built downtown towers. The energy market’s volatility—highlighted by the unprecedented collapse in West Texas Intermediate crude prices in April 2020—contributed to conservative real estate strategies across the industry.
Since that period, oil prices have largely stabilized in the $65–$70-per-barrel range, and businesses have gradually rehired. With improving market confidence, more tenants are returning to the office marketplace and making longer-term leasing commitments.
Lincoln Property Company vice president Virgil Hydes says the leasing momentum at 801 Travis is driven by a combination of updated building amenities and flexible lease terms tailored to tenant needs.
Hydes notes that some tenants chose to downsize their footprints when renewing leases because of lingering uncertainty and widespread work-from-home policies. That trend has driven demand for smaller, well-appointed suites rather than large contiguous blocks of space.
Owners of the 222,000-square-foot building—a state of Illinois pension fund—have invested in upgrades intended to make the 40-year-old tower more appealing. Those improvements include new conference rooms and a tenant lounge offering complimentary coffee, amenities intended to enhance tenant experience and retention.
“The ownership has been great to work with,” Hydes said, citing collaborative efforts to modernize the property and accommodate tenants’ evolving needs.
Located at the corner of Travis and Rusk, the building shares a block with the JW Marriott, a redevelopment of the historic Samuel F. Carter structure, and benefits from the activity and amenities in the surrounding area.
Leasing activity at 801 Travis reported by Lincoln Property Company includes:
- Pedernales Petroleum GP, LLC — renewed 1,461 SF
- Houston American Energy — renewed 3,080 SF
- AlphaGraphics of Houston — signed a new lease for 2,152 SF
- Cabello Hall Zinda, PLLC — signed a new lease for 3,112 SF
- Iskandia Energy Operating, Inc. — renewed 4,286 SF
- North American Energy Standards Board, Inc. — renewed 3,738 SF
- Estrada Hinojosa — renewed 1,771 SF
- Robert Half International — renewed 7,694 SF
- Lugenbuhl, Wheaton, Peck, Rankin & Hubbard — renewed 5,064 SF
Industry data from the Texas A&M Real Estate Research Center shows that Houston’s overall office vacancy rate was 22.8 percent in the second quarter, reflecting continued market adjustment and a wide range of demand across product types and locations.
Sept. 7, 2021 Realty News Report Copyright 2021
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Interior photos: Courtesy Lincoln Property Co.
Exterior photo: 801 Travis. Photo credit: Ralph Bivins, Realty News Report Copyright 2021
File: LPC. Downtown Point of Light.